Ahhh ok - Interesting...

Windows added the "sysvol\..\{GUID}\.." thingy path to the BEGINNING of your PATH environment variable !

The other interesting setting is this:

USERPROFILE=D:\Documents and Settings\Default User

Having said that - a lot of settings are missing, like USERDOMAIN and USERNAME, HOMEDRIVE, HOMEPATH etc ... not totally un-expected I guess. We are running in the system context.